Meltdown? FOMC minutes?, Stochastics, MACD, Moving Averages --> Short Signal --> 3 trades --> $780 profits
5 min Nasdaq Emini 100
Hi,
Today was a really pullback in many days... the market can't go up indefinitely.. and as day traders... I hope you are there to capture and capitalize and fatten your own pockets with this opportunity...
A total of three trades are done today... you can see from the different colors I used in the chart above..
1st trade
When price opened, it already began it's plunge... it was omnimous of a fall... I shorted 1 contract at 1829 and exited at 1824, primarily because price found support at one of my long term moving averages... market direction was sure and I couldn't be sure that it will not rebound... I exited with $100 profits.
2nd trade
However, price actually broke through the moving average in a big way... notice the huge red candle? I shorted another 1 contract at 1823... this time, i knew there is enough momentum to carry it down for at least another 5 to 10 points....
when price paused at 1820, I shorted another 2 contracts.... and finally exited at 1814 when momemtum started to show signs of exhaustion... profits = $420
3rd trade
The 3rd trade is a classic and I hope you managed to get this right, 'cos this is really beginner's stuff... price pulled back all the way to hit the moving averages and started to rebound down.... stochastics also turned downwards from overbought region. MACD was also trying to cut the zero line.. I shorted 1 contract at 1822 and another 2 contracts at 1818... my exit? simple, when price hit the low of 1813 established at the morning session, it's pretty obvious that this is a support area... so I decided not to get too greedy and exited at 1815. profits = $260.
Total profits = $780